Q7: From the perspective of the value lifecycle, what precipitates price-based competition?
Hint: “Just buy the cheapest one because they all do the same thing.”
Ans: Situations where the value that customers want from solutions is mostly in the must-be category. As such, customers can no longer distinguish the differential value among competing solutions.
Prior to the iPhone, GC realizes that most of the value customers want is in the must-be category, which makes it difficult to differentiate their smartphone. As a result, GC soon finds itself in a price war with other smartphone providers.